North America gas weekly update: Withdrawals finally begin

Over the river and through the woods to withdrawal season we go. After last week’s surprisingly bearish 3 bcf injection delayed the inevitable, this week’s expected first withdrawal of the season will come through with a bang. Despite this anticipation, prices continue their sell-off, especially after the market caught wind of smaller than expected impacts from freeze-offs and a moderated short-term weather outlook. Still, it’s too early to throw in the towel, and with winter, timing is everything. Winter risk premia cannot be discounted this early in the season.